E3 Journal of Business Management and Economics

E3 Journal of Business Management and Economics Vol. 4 (5) pp. 113-124, May 2013; © E3 Journals; ISSN 2141-7482

Quality institutional reform and economic performance: Case of telecommunications in the Mena region

Abstract

This paper tries find the determinants and the economic performance measurements in the telecom sector by stuyding the impact of policy reform and the macro-institutional environnement along with external factors suchas the investment effort, population size and sector revenues in the MENA region on the economic performance in the sector. The privatization in the MENA region corresponded in many cases to a foreign capital participation which makes the analysis of the effect of this interaction very important. The major contribution of this paper is that addressing the impact of the macro_institutional environment and the flap reform on the performance of the telecommunications sector for fifteen countries in the region MENA; two components that were not treated simultaneously for this area. In a dynamic Panel data model, the System GMM estimator allows us estimating the coefficients of each determinant as well as the weight of the reform policy and the institutional environnement on the economic performance of the sector. With our econometric approach, it has been shown that political reforms are guided by supportive policies like a major technological effort and income sector, to improve the economic performance of the sector. In addition, the quality of governance, as measured by six indicators, is conducive to the economic performance of the sector and seems to be one of the transmission channels of the impact of policy business reform on the performance of the information technology and communication.

Keywords: Economic performance privatization, Institutional quality, Policy of openness.